Coinbase’s IPO marked a significant milestone in the cryptocurrency industry, as it became the first major cryptocurrency exchange to go public on a traditional stock exchange. The public offering may also be a major step toward the mainstream adoption of cryptocurrency. Coinbase is the first cryptocurrency company to publicly list, which could lead others to follow suit. With a successful public offering and massive valuation, Coinbase makes it harder to dismiss cryptocurrencies as fringe investments. Further, the public listing allows investors to gain indirect exposure to cryptocurrencies by purchasing Coinbase shares. The Coinbase IPO is significant because it represents a bridge between the traditional financial markets and the cryptocurrency ecosystem.
Despite Volume Drop, Coinbase Analyst Highlights Stablecoin Momentum, Competitive Edge
While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Match rate and other terms of the Match Program are subject to change at any time. Brian Armstrong, Coinbase co-founder, chair, and CEO, joins ‘Closing Bell Overtime’ to talk his meeting with Pres. Bitcoin’s BTC/USD tumble below $80,000 sent shockwaves through crypto-related stocks on Monday, with names like Coinbase Global Inc COIN, Robinhood Markets Inc HOOD, MARA Holdings Inc MARA and Riot Pl… Armstrong followed up by offering severance packages for any employees who wished to leave the company if they didn’t agree with its mission. Coinbase was founded by former Airbnb engineer Brian Armstrong and former Goldman Sachs trader Fred Ehrsam in 2012, back when Bitcoin was valued around $15.
The company’s net income in 2020 measured $322.3 million, compared with a net loss of $30.4 million in 2019. The cryptocurrency boom of the past year has fueled major revenue gains for Coinbase. In the first quarter of this year, the company brought in $1.8 billion in revenue, up from $190.6 million in the same quarter in 2020. Bonds.“Bonds” shall refer to corporate debt securities and U.S. government securities offered on the Public platform through a self-directed brokerage account held at Public Investing and custodied at Apex Clearing. For purposes of this section, Bonds exclude treasury securities held in your Jiko Account, as explained under the “Jiko Account” section. Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis.
Top 5 Crypto Trading Platforms in Singapore in 2025
The exchange reported $1.8 billion in revenue for the quarter (versus $1.27 billion for the full year 2020). Coinbase gave no revenue guidance (as a publicly traded company normally would), but instead gave scenarios for user growth depending on different outcomes in the crypto market. It reported 6.1 million active users in the first quarter, more than double the number during the final quarter of 2020. Instead of using a traditional IPO, Coinbase went public through a public listing.
The projected $5 billion valuation for its IPO suggests that eToro’s growth potential remains strong despite past setbacks. CEO Yoni Assia has previously acknowledged the importance of the U.S. market, emphasizing that very few of their global clients trade UK shares. The company’s latest move demonstrates its intention to solidify its presence within the U.S. financial ecosystem. The SEC did recently asked a federal court to pause ongoing litigation against Binance, the world’s largest cryptocurrency exchange, because leadership is now rethinking previous enforcement actions. The process is similar to an IPO, but instead allows employees of Coinbase to sell their existing shares on the market.
- Shares of Coinbase should attract investors who want to get into the cryptocurrency space in addition to, or without buying any coins at all, said Lule Demmissie, president of Ally Invest.
- It’s one of the leading exchanges and provides the gateway for many investors looking for their first engagement with the cryptocurrency industry.
- Unlike many newly public companies Coinbase is profitable — the company estimates it had net income of between $730 million and $800 million in the first quarter.
Stock Picks From Seeking Alpha’s February 2025 New Analysts
You must repay your margin debt regardless of the underlying value of the securities you purchased. Public Investing can change its maintenance margin requirements at any time without prior notice. If the equity in your margin account falls below the minimum maintenance requirements, you may be required to deposit additional cash or securities.
While the SEC recently lifted that restriction, Coinbase nonetheless declined to create new shares for the offering–which means it will not dilute its existing equity. The direct listing also means Coinbase can avoid some of the onerous (and expensive) requirements of an IPO, including using the services of intermediaries known as underwriters. In line with the https://xcritical.online/ Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers.
Why is the Coinbase IPO significant for the cryptocurrency industry?
Bitcoin prices have more than doubled this year and are currently trading near a record price of about $62,000. Many market observers predicted the stock would rise sharply from its $250 reference price because the company is already profitable, has rapidly rising sales and a growing number of customers. Crypto onlookers have also pondered what impact (if any) Coinbase’s listing will have on Bitcoin, the industry’s flagship cryptocurrency.
What the Coinbase listing means for crypto
The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability – yield is subject to change. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment.
Fintech stocks were some of the biggest decliners on Monday as the Nasdaq suffered its steepest drop since 2022. Crypto-related companies Robinhood, Coinbase and Strategy all notched double-digit decl… Although Coinbase has been a darling for regulators and has avoided hackers better than most crypto startups, the company has had its fair share of controversy. Armstrong, who serves as CEO, landed in hot water after he wrote a company memo saying that the company wouldn’t get involved in politics, a break from the Silicon Valley norm. Shares of Coinbase are listed on the Nasdaq under the ticker “COIN,” and closed at $328.28, up 31% from the $250 reference price set by Nasdaq ahead of the first trade. Ehtereum, the second most valuable cryptocurrency, has nearly tripled thanks in part to the fact that it is the digital payment of choice used in transactions for non-fungible tokens, or NFTs.
Cryptocurrency has been looked at with skepticism in the investing world, so many investors believe that the Coinbase IPO may aid in legitimizing cryptocurrency. Given that it is the first xcritical cheating cryptocurrency exchange to go public, Coinbase will inform the value of private cryptocurrency companies. U.S.-headquartered cryptocurrency exchange Coinbase Global has registered with India’s Financial Intelligence Unit (FIU), allowing it to offer crypto trading services in the country, the company said …
“As the cryptocurrency market matures and more firms inevitably pursue Coinbase’s high margins, the firm’s competitive position will inevitably deteriorate,” the report said. Ahead of the listing, stock research firm New Constructs released a report describing the company’s anticipated $100 billion valuation as “ridiculous,” suggesting it should be valued at a shade under $19 billion instead. Soon after, market demand will determine how much shares cost, meaning that Coinbase stock could trade much higher than this, especially if it benefits from any kind of opening day momentum. Among the risks described in Coinbase’s S-1 are the inherent volatility of cryptocurrencies and the prospect of another “crypto winter”—a term used for a bear market that lasts several years.
Per the report, Coinbase collected approximately 0.57% of every transaction in fees in 2020. This came to $1.1 billion in trading revenue on $193 billion in trading volume—in turn making up 86% of revenue for 2020. To make money, Coinbase charges several different fees on its brokerage app, including for buying and selling Bitcoin and other cryptocurrencies. Fees are more expensive for xcritical reviews smaller purchases, and when customers move funds out of Coinbase.
Funds in your High-Yield Cash Account are automatically deposited into partner banks (“Partner Banks”), where that cash earns interest and is eligible for FDIC insurance. Your Annual Percentage Yield is variable and may change at the discretion of the Partner Banks or Public Investing. Apex Clearing and Public Investing receive administrative fees for operating this program, which reduce the amount of interest paid on swept cash. Crypto stocks have remained on edge in the past few weeks as Bitcoin and other altcoins have pulled back.
Historical or hypothetical performance results are presented for illustrative purposes only. In mid-December, Coinbase announced the filing of an S-1 initial public offering with the SEC (Securities and Exchange Commission). However, Coinbase decided to sell shares privately ahead of the IPO on Nasdaq’s private market.
